Infosys Q3 FY13 results: Ten takeaways

After eight quarters, Infosys on Friday surprised the street by upping its FY13 guidance. Infosys reported a net profit of Rs 2,369 crore for the quarter ended December 2012 against a net profit of Rs 2,372 crore in the same period a year ago. The net profit was above ET Now poll estimate of Rs 2,225 crore.

Shot of dopamine: The biggest gain for Infosys will be its confidence. The change in the mood within and among its external stakeholders could just result in a virtuous cycle of performance.

Positive surprise: By not lowering guidance for the 2012-13 fiscal, as was widely expected, Infosys may be signaling that better days lie ahead.

Watchful commentary: Despite an optically impressive quarter, "cautiously optimistic" is the phrase that both CEO S D Shibulal and finance head Rajeev Bansal have employed. Will be a good idea to pay heed and not get carried away.

Winning deals: Not counting those from its acquisition Lodestone, Infosys added 53 clients during the quarter, including 8 clients who have signed contracts worth about three-quarter of a billion dollars.

Costs the key: Administrative costs are being squeezed but sales and marketing expenses are rising, as the company is attempting a fine balance between growth and margins.

Onsite boost: Billing and revenue from higher-value onsite work has risen despite days of shutdown because of a storm in the US. Infosys has obviously been burning the midnight oil.

Broad-based growth: Infosys has shown improvement across geographies and verticals. India, though a small part of its market, has been an especially bright spot.

Pay raise: Up to 9,000 0nsite staff, who can take a lot of the credit for the showing in the third quarter, can look forward to higher pay.

Stagnant headcount: Net of comings and goings, the company added just around 1,000 staff. With a bench of over 30,000 and margins to protect, the days of adding employees by the thousands may be over.

Trainees left behind: From about 12,931 trainees during the same period last year, Infosys is down to 4130 trainees at the end of December. This may be bad news for graduating engineers who may have to wait longer for new opportunities.